XYZ Corporation has a zero-coupon and a 5% coupon bonds with the same 7-year maturities and the $1,000 par values. Which of the following is true?

A. The zero-coupon bond must be more expensive because of its greater capital gain potential.

B. Rational investors will prefer the zero-coupon bond because it has no reinvestment risk.

C. Both bonds must sell for the same price.

D. Rational investors will prefer the 5% bond because it pays more interest.

E. The zero-coupon bond must be cheaper.